Connected entities

The debt and equity provisions also include the concept of connected entities.

A connected entity of an entity is either an associate of the entity or another member of the same wholly owned group if the entity is a company and is a member of that group.

The connected entity concept means that it is not only the position of a single entity that is relevant in determining whether a debt or equity interest exists. The position of a connected entity is also relevant in certain circumstances. For example, a financing arrangement can be a debt interest if the entity that has the effectively noncontingent obligation does not receive the financial benefit under the scheme, but a connected entity does. Similarly, for example, the equity test takes into account any connected entity’s ability to determine the amount of financial benefits to be provided by the issuer of a financing arrangement.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.